China-Africa Economic and Trade Cooperation

Background:

China is the largest developing country in the world, and Africa is home to the largest number of
developing countries. The combined population of China and Africa accounts for over one-third of the
world's total. Promoting economic development and social progress is the common task China and
Africa are facing since 1950.

Promoting Balanced Development of Trade

Trade was the earliest form of China-Africa economic and trade cooperation. With the development of
China-Africa relations and increased exchanges between China and African countries, the scale of
China-Africa trade has increasingly expanded. China-Africa bilateral trade volume was only US$12.14
million in 1950 it rose to US$1 billion in 1980. After reaching the US$10 billion mark in 2000. In 2008,
China-Africa bilateral trade volume exceeded US$100 billion, of which US$50.8 billion is China's
exports to Africa and US$56 billion is imports from Africa. Although China-Africa trade volume dropped
to US$91.07 billion in 2009 as a result of the international financial crisis, China became Africa' s
largest trade partner that year for the first time. As the global economy recovered, China-Africa trade
also maintained a favorable recovery and development momentum. From January to November in
2010, China-Africa trade volume reached US$114.81 billion, a year-on-year growth of 43.5%.

China's exports to Africa were mainly light industrial products, food, chemical products, native produce
and animal by-products the export of machinery, automobiles and electronic items has been
dramatically increasing, with product quality and technology markedly improved. Currently, the
proportion of machinery and electronic products accounts for more than half of China's exports to
Africa. Africa's major export products to China used to be cotton and phosphate, among other primary
products also steel, cop-per, chemical fertilizers electronic items produced in Africa have successively
entered China's market.

Following the principle of mutual benefit and reciprocity, China has been promoting trade facilitation,
and all-round, comprehensive and balanced China-Africa trade for years. China has signed bilateral
trade agreements with 45 African countries, and enhanced cooperation in customs, taxation,
inspection and quarantine, so as to create favorable conditions for China-Africa trade development.

Now China and Africa are both in the process of industrialization and urbanization, a time
characteristic of great market demand, hence China-Africa trade has great potential. For China,
Africa's exports of crude oil, minerals, steel and agricultural products plays an active role in promoting
China's economic development and improving the Chinese people s livelihood.

Expanding Mutual Investment Fields

China began to invest in African countries in the 1980s, and on a small scale at the beginning. In
recent years, China' s investment in Africa has shown new characteristics. First, rapid growth. By the
end of 2003 China's direct investment in Africa had reached US$490 million, rocketing to US$9.33
billion by the end of 2009. China's investment in Africa covers mining, financing, manufacturing,
construction, tourism, agriculture, forestry, animal husbandry and fisheries. Fourth, multiform methods.
In addition to sole proprietorship and joint-venture ownership, investment methods are also being
increasingly diversified, such as equity participation, merger and acquisition, and joint-venture
cooperation with third-country enterprises for resources development. The result is satisfactory.
Chinese enterprises take charge of infrastructure construction in the operation zones, and attract
Chinese and foreign enterprises to move in and gradually form industrial clusters. So far 13
companies have moved in; they engage in mining, prospecting, nonferrous metals processing,
chemical engineering, and construction, having made investment worth US$600 million, and providing
more than 6,000 jobs for local people. African countries possess rich resources, hence cooperation in
resource development is a significant part of China-Africa investment cooperation.

In recent years, as the African economy develops and China's market potential grows, African
enterprises have been investing more vigorously in China. Mauritius, South Africa, Seychelles, Nigeria
and Tunisia are the major African countries investing in China.

Attaching Importance to Infrastructure Construction

As backward infrastructure is the bottleneck that hinders the development of many African countries,
infrastructure construction is one important aspect of China-Africa economic and trade cooperation.

China attaches importance to giving support to African countries to improve their infrastructure, helping
them build houses, roads, bridges, railways, airports, ports, telecommunications, power networks,
water supply and drainage systems, and hospitals through means such as assistance, project
contracting, investment cooperation, and expanding channels of financing, which have positive effects
on the development of Africa. the Chinese government has offered many preferential loans, and
supports its financial institutions to expand the amount of commercial loans to Africa.

For example, the programs for the public good organized by Chinese enterprises have benefited over
two million people in Sudan, the friendship schools China aided in Nigeria promoted elementary
education in 300 villages, and vocational training centers in Angola and Libya turn out large numbers
of skilled workers.

Helping to Improve the People's Livelihood

If Africa is to reach the UN Millennium Development Goals it must improve its public facilities, solve
food shortage problems, improve sanitary conditions and reduce the burden of foreign debt. China
shows great concern for the livelihood of African people, helping African countries to build public
facilities, increase their agricultural production, improve their medical care and public health service,
actively reduce their debts, and provide disaster relief and humanitarian aid. Agriculture is the pillar
industry of most African countries and a priority field for China-Africa economic and trade cooperation.
Improving medical and health conditions in Africa. The major measures taken by China to help African
countries improve their medical and health conditions include offering assistance to build hospitals,
sending medical teams to Africa, and providing medicines and medical supplies. China and African
countries hold in-depth exchanges of views on environmental issues such as international negotiations
on climate change to safeguard the common interests of developing countries.

Conclusion
Global issues of food security, energy supply, climate change and prevention and control of epidemic
diseases have become more prominent. And uncertain factors in the global economy are increasing.
As developing countries, China and African countries now face good opportunities to boost their
growth and also the challenges of complex global problems. China and Africa enjoy complementarity.
Their common interests are constantly expanding, and the future of their economic and trade
cooperation is bright. On the principles of equality, mutual benefit and common development, China
will continue to promote China-Africa economic exchanges within bilateral or multilateral frameworks,
broaden the scope of cooperation, explore new methods of cooperation and share the fruits of
development with the African countries.

As economic globalization progresses, the economic and trade cooperation between China and Africa
will definitely gain momentum to reach a larger scale, broader scope and higher level with their joint
endeavors, which can give new energy and vitality to overall China-Africa cooperation and make more
contributions to building a world with long-lasting peace, common prosperity and harmony.